Krista Cortese, her husband and their toddler were making due with the 2003 Mazda hatchback that they got years ago from a neighbor. But the Seattle family was spending $230 a month on average for gas and maintenance. It was costly and Cortese didn’t like using fossil fuels to get around.
“We’ve definitely been thinking about getting an electric car for two years now, but we’re pretty low income,” she said. “We’re both artists.”
There was a state sales tax break and a federal tax credit to cut the price, but electric vehicles were still out of reach.
Then came this summer’s launch of the Washington EV Instant Rebate Program, a first-of-its kind program nationally that provides rebates at the time of purchase for income-eligible consumers who buy or lease a new or used EV.
The Corteses were at the Campbell Nissan lot in nearby Edmonds at 9 a.m. on Aug. 1, the first day the program took effect. After all of the discounts were factored in, they drove away with a black, new 2024 Nissan Leaf SV Plus for $102 per month under a three-year lease.
“It’s so cute!” Cortese enthused.
Nineteen days into the effort, lower-income residents in Washington had bought or leased more than 1,000 EVs and roughly $8 million of the $45 million available for rebates had been issued. About 70% of the deals have been three-year leases — which is the most cost-effective option for consumers.
“We’ve had an overwhelmingly positive response,” said Steven Hershkowitz, clean transportation managing director for the Washington State Department of Commerce, which is administering the program. “This is having its intended effect so far.”
Washington leaders have been strong proponents of the shift to electric vehicles. Following California’s lead, the state is requiring all new vehicles sold here to be zero carbon emissions by 2035, including passenger cars, light-duty vehicles, and medium-duty vehicles such as larger pick-up trucks and SUVs. Last month, 16% of new vehicle registrations in the state were EVs and plug-in hybrid vehicles.
The fraction of EV sales have been climbing in the state over time, but the purchases have largely been Teslas bought by more affluent consumers. There are now more affordable EVs available, and the new rebate aims for more equitable access.
“Low-income people have been priced out of EVs until this program,” said Jim Walen, who owns Seattle Hyundai and two other dealerships. “This rebate is a chance for them to get theirs.”
About 300 of the state’s nearly 400 auto dealers have signed up to participate in the program.
While the rebate initiative is racking up sales, critics say the costs to taxpayers don’t justify the climate benefits. The program is being paid for through the state’s general fund.
Todd Myers, vice president for research at Washington Policy Center, a conservative think tank, said the short-term program won’t do much to help the state reach its EV sales targets and that there are more cost-effective climate strategies.
He suggested that certified carbon offsets — programs that pay others to make carbon-cutting investments — would be a smarter strategy.
“The EV subsidy is just incredibly wasteful and bad for the environment,” Myers said by email. “Not only does it cost more than the value of the environmental benefit, it wastes money that could go to reducing the risk of climate change far more effectively.”
State leaders promoting the rebate program have noted that transportation is the lead contributor to Washington’s carbon emissions and air pollution, and that lower-income communities are often most impacted by the pollutants.
The rebates are only available to Washington residents and the terms include:
- Income eligibility is determined by household size. For example, the cut off is $45,180 a year for a single person or $93,600 for a family of four.
- New EVs are eligible for a $5,000 rebate for a purchase or two-year lease, or $9,000 for a lease of three years or longer.
- Used EVs are eligible for a $2,500 rebate for purchases and leases of two years or longer.
- The deal applies to vehicles priced at $90,000 or less.
- There are additional discounts for state sales tax and federal tax rebates, depending on the vehicle’s price and automaker.
Consumers fill out an eligibility form at the dealership when making the purchase, and bear responsibility for the costs if they misrepresent their income and are called on it by the state.
“We have a responsibility to make sure the program is followed,” said Walen, who noted that his dealership has received a lot of calls from shoppers from out-of-state who are not eligible.
Cortese said the purchase was straightforward and that keeping the Nissan charged has been easier than expected.
“I thought we would be charging this car every night,” she said. “It’s once or twice a week.”
The car has an estimated range of 212 miles. The Corteses have a garage in the backyard of their rental house and access to a 240-volt outlet, which is higher than most residential outlets. Cortese needs the higher juice to power the kiln used to fire her flower-adorned ceramics.
She estimates the electricity for charging her zero emissions car will be about $10 a month.
Said Cortese: “Bye bye, oil.”